Ikea Enters Gig Economy with Acquisition of TaskRabbit

Published By : 29 Sep 2017 |Published By : QYRESEARCH

The ‘gig economy’ is rapidly becoming a dominant trend in the economic structure in Western economies, as it provides a stable structure for freelancers as well as companies, which can call upon individuals as per their requirement. Ikea has now joined the gig economy with its acquisition of TaskRabbit to enable the availability of freelance workers to assemble their famous DIY furniture for customers who are befuddled by the arrangement. Ikea declined to give out details about the costing structure of the acquisition, but confirmed it in a statement, with TaskRabbit expected to operate independently after closing the deal, which is likely to happen next month.

TaskRabbit has several operations under its belt but one of its key operations includes connecting more than 60,000 ‘taskers’ who act as one-time freelance workers to perform household chores including furniture assembly and handyman chores. The taskers are paid in terms of hourly rates specified by them on the website’s listing.

This type of operation has become the norm in the growing sharing economy across the world, with the gig economy model projected to include almost 30% of today’s working age population in developed countries. TaskRabbit was started in 2008 in San Francisco and is available in 40 cities across the U.S. as well as in London. The growing company thus represents the perfect starting point for Ikea’s entry into the new sharing economy. Ikea owns 44 stores in the U.S., a part of its 357 stores in 29 countries, which could all eventually incorporate TaskRabbit into their operations over time.